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A BANK GROSSLY MISMANAGED. TRUE CONDITION OF THE LOANERS' BANK. THE STATEMENTS OF ITS PRESIDENT SHOWN TO BE UNTRUE-RESULT OF THE INVESTIGATIONS OF THE RECEIVER-LOSSES OF STOCKHOLDERS AND DEPOSITORS, J. F. Hubbard, jr., receiver of the Loaners' Bank, at No. 20 Nassau-st., has finished his investigations into the affairs of the bank and prepared a statement for submission to the stockholders and depositors When the bank failed on May 2. Dorr Russell, the President, repeatedly and emphatically stated that the bank was able to pay every dollar due its depositors, and that the only motive for closing it was to prevent a number of unscrupulous directors from misappropriating the funds. Receiver Hubbard in his report states that the bank has been grossly, if not criminally, mismanaged, and that it will not pay more than 25 cents on the dollar, nor even that sum unless a favorable sale of the assets is effected. The money has been loaned in the most reckless manner upon worthless security. For the purpose of showing where the money of the bank has gone, Mr. Hubbard has prepared a statement to the effect that there are now in the bank loans due and unpaid as follows: 1871, $21, 115; 1872, $79,014 1873, $69,408 46: 1874, $31, 920 89; 1875, $71,644 62: 1876, $76,255 82-making an aggregate of $349,359 54. Of the loans of 1876 $72,000 are properly chargeable to previous years. Among the persons who obtained these loaus are the fol lowing: Kellogg H. Loomis, Jan. 5. 1871, $1,000. the security for which consists of ware! ouse receipts which are fraudulent; Alston McNair & Co., Feb. 13, 1871. $10,000. security warehouse receipts in judgment: A. W Lewett, May 1871.$1,000. security, note partly paid, balance on suit; Harlon & Evans, May 11, $700, collateral, protested notes: W. T. Jay & Co., July 38 and Aug. 3. $1,000, warehouse receipts for wines: Bright June 5. $5,500, collateral, securities of the Milwaukee and Minnesota Railroad of no value: Bright & Gunuison, $5,000, collatera Milwaukee and Minnesota Railroad securities; A. S. Bright, $700. securities, 100 shares Rocky Bar Gold and Silver Mining Company and 100 shares of the New-York and Ohio Gold and Silver Mining Company G. Patterson had the largest loan, having obtained $33,116 19 in September, 1872, stock of the Derby Coal Company and mortgages on Morrisani and Yonkers property and some eoal lands of no value; J. P. Richards, from Nov. 9 to 30, 1872, obtained loans aggregating $6,250 ou stock the Roper President. Calorie Engine Company H. illiamson, and the Globe Printing Company obtain d a loan of $26. 400, on which they repaid $16,772 S Davenport. Jan. 7,1873, obtained $4,069 90on his note and policy of life insurance which has since lapsed; M. P. Benus, who connected with the Market Savings Bank, on March 27. obtained $1,654 on his note for $2,500 stock of the Buffalo, Corry and Pittsburgh Ratiroad Company value L. B. Brooks July 11. 1873. received $4,000 bonds of the Memphis and E Paso Railroad, 200 shares of the Little Rock and Fort Smith allroad, etc., of no value; H. Kneeland obtaine 72. but paid $2,617; Thomas J. Treamer. July 14. 1873, ceived $16,000on 400 shares of the Loaners' Bank J.H. Courtenay obtained $13,000 on 150,000 of the worthless bonds of the New-York, West Shore and Chicago Railroad, a railroad which exis's only on paper; H Catherwood obtained $17,828; J.E. Conant obtained $8,848: the New York and Hempstead Railroad Com$any$$,500, all in worthless securities. The capital stock of the bank was $500,000, of which $200,000, or 40 per cent, was paid in. It is now worse than worthless. The president, Dorr Russell, only owned 20 shares, worth about $800. Other and larger stockholders and their losses are as follows: George T. Dorlan, 1,158 shares. loss $46,320 William D. Curson, 300 shares, loss $12,000; Robert 351 shares, loss $14,040; John Butler, 250 shares, $10,000; George C. Jeffrey, 200 shares, loss $8,000 Archibald M. Bliss of Brooklyn 125 shares, loss $5,000; Francis Creamer, 300 shares, loss $12,000; E F Brown, 350 shares, loss $14,000; H. Bechrock & Co., 100 shares, loss $4,000. The receiver on Tuesday called a meeting of the depositors of the bank to make a statement of its condition and ascertain their wishes. He said that when he came into the back as receiver. he had obtained the impression from its president, Dorr Russell, and also from its tashier, that there were in the institution sufficient assets to pay not only the depositors, but the stockholders. On the contrary, when he came to examine the books of the bank, he found that the value of the assets had been greatly overestimated, and that it had suspended from sheer exhaustion, and not from a disagreement in its Board of Directors, as stated at the time. The books showed that all the thoney received by the bank from its customers for interest during the last year of its ex istence was less than $10,000, while during the same period it paid out $11,000 interest on deposits and its expenses amounted to about $25,000 more. In order to show how much the bank needed money Mr. Hubbard stated that Russell, the President, on the 17th of last April. took from the bank di monds on which $8,500 had been advanced, and procured from a gentleman in Maiden-lane a loan of ,000 for the count of the bank, leaving the jewels as security. Loans had been made by Mr. Russel 1 for from two twenty days in most instances, and in the majority of cases not one cent of interest or principal had been paid to the stitution since 1871. The net cash assets of the were $5,574 and four-fifths of the items in the nominal assets were worthless. There was also a list "overdrafts" due from banks and bankers. amounting in the aggregate to $3,764 41. not a penuy of which good. Another item, that of real claim of 187,931 74 against premises in Thirtieth-st and if they ever recover 82,000 of this they would be doing well. There also a spended account of $3,960 and a former teller in the bank is claimed to have been a defaulter to that amount. The loans made by the bank were in almost every ease on worthless se curities, and in some cases several loans were advanced On the same securities. There is one loan of $33,116. which on the books appears to have been given to C.G. Patterson on Derby Coal Company stock, which claim, the opinion of the receiver. is not worth 33 cents. Mr. Hubbard said that he had no desire to shield Mr. Russell from ans responsibility but he understood that that gen tleman had accepted the Presidency of the Derby Coal Company, hoping thereby to secure the loan advanced by the bank A large number of tae for the loans made by the bank were which ha since gone protest. Loans were also made on life of life the the husband, wife the of on name in the cies the making the assignment, which of course was illegal. The bank had also loaned large sums of money own stock as collateral. His whole investigation of the books of the showed that the and that its affairs had been managed in a criminally negligent manuer. The whole amount of loans collected since the beginning of his was only about $600. The total amount of the bank assets real nominal as shown by the receiver? S report, is$415,650 and its liabilities, $218,639 35. J. G. Anderson, bank examiner. said that he had in vestigated the affairs of the bank and in place found that $100,000 of interest had been credited up charged to bills receivable. He asked Mr Russell if be had collected the interest and he replied in the negative whereupon Auder informed him that the entry not a proper one. He said he had never seen bank such a bad condition, and said that if the affairs of the institution were wound up by a receiver be doubted the dollar ever would ceats the depositors He had received proposition from some persons take to the bank charter of for return offered in assets and pay the on the dollar committee, composed of the following gentlemen. John Templeton, Herbert Kattell, H. Blodgett, John H. Gilbert, and Benjamin Estes, was appointed to make further inquiries in the matter. Four of them wore at the bank yesterday occupied in examining the curities, and they will Hundoubtedly recommend to the depositors, at their meeting to-day. to accept the offer. ISSTONERS
